Corruption in Brazil and Its Effects on Economic Growth

Abstract

This research study summarises the effects of corruption in Brazil and its effects on the economic growth of the country, both on the governmental and corporate level. By making use of the theoretical approach of Pak Hung Mo and his model of the economic growth which takes into consideration three important variables that affect the productivity of an economy and therefore the economic growth of a country: the human capita, GDP per capita and the corruption; it is possible to originate a function derived from these three variables. The rent- seeking and the revisionist chains serve as a basis for the theoretical analysis of how corruption may affect an economy of a country, and using them alongside with the data from the Corruption Perceptions Index developed by Transparency International it is possible to conclude that in some countries corruption may act as grease on the wheels of the economy whilst in other countries it may be a barrier to the overall development of a country, which is the case of Brazil as observed in this research.

Keywords: Brazil, economics, effects of corruption, corruption perceptions index, corruption, economic growth

JEL Classification: A13, A19, B22, E03, G02, H80, K42, O10, O11, O40, O44, O47, O49, O54, Y40, Z13